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The paper studies the interaction between public and private spending in a two-stage education framework (K-12 and tertiary education) and their effects on economic growth. We find that an increase in the overall education public spending crowds out the total level of private contributions and...
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the aggregate shocks and the interaction between these shocks and the casual effects. We show that returns to investment …
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, this results in income inequalities and inefficient low investment in human capital. This is even more pronounced if …. In this scenario, a benevolent government ensures an efficient level of human capital investment, while partly selfish …
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